{"id":12225,"date":"2022-04-12T02:50:45","date_gmt":"2022-04-12T02:50:45","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/?post_type=chapter&p=12225"},"modified":"2024-09-11T16:42:09","modified_gmt":"2024-09-11T16:42:09","slug":"module-4-assignment-problem-set-applications-of-supply-and-demand","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/chapter\/module-4-assignment-problem-set-applications-of-supply-and-demand\/","title":{"raw":"Module 4 Assignment: Problem Set \u2014 Applications of Supply and Demand","rendered":"Module 4 Assignment: Problem Set \u2014 Applications of Supply and Demand"},"content":{"raw":"You can click on the link to download the problem set for this module:\u00a0Applications of Supply and Demand Problem Set.<\/a>\r\n

Applications of Supply and Demand Problem Set[1]<\/strong><\/a><\/sup><\/h2>\r\n
    \r\n \t
  1. The graph below shows the supply and demand curves for burritos. Suppose that the government imposes a Price Ceiling<\/strong> equal to $5.<\/li>\r\n<\/ol>\r\n\"Coordinate<\/a>\r\n

    Will this result in a binding or non-binding price ceiling?<\/p>\r\n\r\n

    Use the following information to answer questions 2 through 7:<\/h3>\r\nThe graph below shows the supply and demand curves for soda.\r\n\r\n\"Coordinate<\/a>\r\n
      \r\n \t
    1. First consider a situation without any government interventions and no price controls. In that case, what is the equilibrium quantity?<\/li>\r\n \t
    2. What is the equilibrium price?<\/li>\r\n \t
    3. Now suppose that the government imposes a Price Floor<\/strong> equal to $8. As a result of this new policy, what is the quantity demanded?<\/li>\r\n \t
    4. What is the new quantity supplied?<\/li>\r\n \t
    5. As a result of this Price Floor<\/strong>, is there shortage or surplus, or is the price control non-binding?<\/li>\r\n \t
    6. What is the amount of the shortage or surplus?<\/li>\r\n<\/ol>\r\n \r\n

      Use the following information to answer questions 8 through 10:<\/h3>\r\nThe graph below shows the supply and demand curves for pizza rolls.\r\n\r\n\"Coordinate<\/a>\r\n
        \r\n \t
      1. What is the size of consumer surplus?<\/li>\r\n \t
      2. What is the size of producer surplus?<\/li>\r\n \t
      3. What is the size of social (total) surplus?<\/li>\r\n<\/ol>\r\n \r\n

        Use the following information to answer questions 11 through 14:<\/h3>\r\nThe graph below shows the supply and demand curves for beer. Suppose that the government imposes a Price Ceiling<\/strong> of 4.\r\n\r\n\"Coordinate<\/a>\r\n
          \r\n \t
        1. What is the size of consumer surplus?<\/li>\r\n \t
        2. What is the size of producer surplus?<\/li>\r\n \t
        3. What is the size of deadweight loss?<\/li>\r\n \t
        4. What is the size of social (total) surplus?<\/li>\r\n<\/ol>\r\n\u00a0<\/strong>\r\n

          Use the following information to answer questions 15 through 23:<\/h3>\r\nUse the graph below to answer the following questions.\r\n\r\n\"Coordinate<\/a>\r\n
            \r\n \t
          1. What is the size of consumer surplus when there is no government price control?<\/li>\r\n \t
          2. What is the size of producer surplus when there is no government price control?<\/li>\r\n \t
          3. What is the size of social surplus when there is no government price control?<\/li>\r\n \t
          4. What is the size of deadweight loss when there is no government price control?<\/li>\r\n \t
          5. What is the size of consumer surplus when a price ceiling of $5 is imposed?<\/li>\r\n \t
          6. What is the size of producer surplus when a price ceiling of $5 is imposed?<\/li>\r\n \t
          7. What is the size of deadweight loss from a price ceiling of $5?<\/li>\r\n \t
          8. What is the size of social surplus when a price ceiling of $5 is imposed?<\/li>\r\n \t
          9. What is the difference between total surplus before and after price control is imposed? How does this number compare to the deadweight loss?<\/li>\r\n<\/ol>\r\n

            <\/h3>\r\n

            Use the following information to answer questions 24 through 32:<\/h3>\r\nThe graph below shows the supply and demand curves for beer.\r\n\r\n\"Coordinate<\/a>\r\n
              \r\n \t
            1. What is the size of consumer surplus when there is no government price control?<\/li>\r\n \t
            2. What is the size of producer surplus when there is no government price control?<\/li>\r\n \t
            3. What is the size of social surplus when there is no government price control? What is the size of deadweight loss when there is no government price control?<\/li>\r\n \t
            4. What is the size of consumer surplus when Price Floor of $9 is imposed?<\/li>\r\n \t
            5. What is the size of producer surplus when Price Floor of $9 is imposed?<\/li>\r\n \t
            6. What is the size of deadweight loss from Price Floor of $9?<\/li>\r\n \t
            7. What is the size of social surplus when Price Floor of $9 is imposed?<\/li>\r\n \t
            8. What is the difference between total surplus before and after price control is imposed?<\/li>\r\n \t
            9. How does this number compare to the DWL?<\/li>\r\n<\/ol>\r\n \r\n
              \r\n\r\n \r\n\r\n
              \r\n\r\n              [1]<\/a> This assignment by Lumen Learning is licensed under a Creative Commons Attribution 4.0 International License. You can access an alternative means to plotting points at https:\/\/www.desmos.com\/calculator<\/a>.\r\n\r\n<\/div>","rendered":"

              You can click on the link to download the problem set for this module:\u00a0Applications of Supply and Demand Problem Set.<\/a><\/p>\n

              Applications of Supply and Demand Problem Set[1]<\/strong><\/a><\/sup><\/h2>\n
                \n
              1. The graph below shows the supply and demand curves for burritos. Suppose that the government imposes a Price Ceiling<\/strong> equal to $5.<\/li>\n<\/ol>\n

                \"Coordinate<\/a><\/p>\n

                Will this result in a binding or non-binding price ceiling?<\/p>\n

                Use the following information to answer questions 2 through 7:<\/h3>\n

                The graph below shows the supply and demand curves for soda.<\/p>\n

                \"Coordinate<\/a><\/p>\n

                  \n
                1. First consider a situation without any government interventions and no price controls. In that case, what is the equilibrium quantity?<\/li>\n
                2. What is the equilibrium price?<\/li>\n
                3. Now suppose that the government imposes a Price Floor<\/strong> equal to $8. As a result of this new policy, what is the quantity demanded?<\/li>\n
                4. What is the new quantity supplied?<\/li>\n
                5. As a result of this Price Floor<\/strong>, is there shortage or surplus, or is the price control non-binding?<\/li>\n
                6. What is the amount of the shortage or surplus?<\/li>\n<\/ol>\n

                   <\/p>\n

                  Use the following information to answer questions 8 through 10:<\/h3>\n

                  The graph below shows the supply and demand curves for pizza rolls.<\/p>\n

                  \"Coordinate<\/a><\/p>\n

                    \n
                  1. What is the size of consumer surplus?<\/li>\n
                  2. What is the size of producer surplus?<\/li>\n
                  3. What is the size of social (total) surplus?<\/li>\n<\/ol>\n

                     <\/p>\n

                    Use the following information to answer questions 11 through 14:<\/h3>\n

                    The graph below shows the supply and demand curves for beer. Suppose that the government imposes a Price Ceiling<\/strong> of 4.<\/p>\n

                    \"Coordinate<\/a><\/p>\n

                      \n
                    1. What is the size of consumer surplus?<\/li>\n
                    2. What is the size of producer surplus?<\/li>\n
                    3. What is the size of deadweight loss?<\/li>\n
                    4. What is the size of social (total) surplus?<\/li>\n<\/ol>\n

                      \u00a0<\/strong><\/p>\n

                      Use the following information to answer questions 15 through 23:<\/h3>\n

                      Use the graph below to answer the following questions.<\/p>\n

                      \"Coordinate<\/a><\/p>\n

                        \n
                      1. What is the size of consumer surplus when there is no government price control?<\/li>\n
                      2. What is the size of producer surplus when there is no government price control?<\/li>\n
                      3. What is the size of social surplus when there is no government price control?<\/li>\n
                      4. What is the size of deadweight loss when there is no government price control?<\/li>\n
                      5. What is the size of consumer surplus when a price ceiling of $5 is imposed?<\/li>\n
                      6. What is the size of producer surplus when a price ceiling of $5 is imposed?<\/li>\n
                      7. What is the size of deadweight loss from a price ceiling of $5?<\/li>\n
                      8. What is the size of social surplus when a price ceiling of $5 is imposed?<\/li>\n
                      9. What is the difference between total surplus before and after price control is imposed? How does this number compare to the deadweight loss?<\/li>\n<\/ol>\n

                        <\/h3>\n

                        Use the following information to answer questions 24 through 32:<\/h3>\n

                        The graph below shows the supply and demand curves for beer.<\/p>\n

                        \"Coordinate<\/a><\/p>\n

                          \n
                        1. What is the size of consumer surplus when there is no government price control?<\/li>\n
                        2. What is the size of producer surplus when there is no government price control?<\/li>\n
                        3. What is the size of social surplus when there is no government price control? What is the size of deadweight loss when there is no government price control?<\/li>\n
                        4. What is the size of consumer surplus when Price Floor of $9 is imposed?<\/li>\n
                        5. What is the size of producer surplus when Price Floor of $9 is imposed?<\/li>\n
                        6. What is the size of deadweight loss from Price Floor of $9?<\/li>\n
                        7. What is the size of social surplus when Price Floor of $9 is imposed?<\/li>\n
                        8. What is the difference between total surplus before and after price control is imposed?<\/li>\n
                        9. How does this number compare to the DWL?<\/li>\n<\/ol>\n

                           <\/p>\n

                          \n

                           <\/p>\n

                          \n

                          [1]<\/a> This assignment by Lumen Learning is licensed under a Creative Commons Attribution 4.0 International License. You can access an alternative means to plotting points at https:\/\/www.desmos.com\/calculator<\/a>.<\/p>\n<\/div>\n\n\t\t\t

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                          Candela Citations<\/h3>\n\t\t\t\t\t
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                          CC licensed content, Original<\/div>